Champion Contractors Corp is trying to decide which of two machines to buy.The price of the machines and their respective cash flows are described below.The decision to buy is based on which of the two machines produces the largest rate of return.Given the information below which of the machines should Champion buy?
Machine A: Cost $130,000 and will produce $36,063.27 each year for 5 years
Machine B: Cost $125,000 and will produce $16,188.07 every 6 months for 5 years (10 pmts).
Correct Answer:
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Machine A Ra...
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